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          What are Peru’s Main Exports and Imports?

          What are Peru’s Main Exports and Imports?

          Peru’s economy is classified as an upper middle- class economy by the World Bank. It’s also the 39th largest economy worldwide. Due to economic reforms that took place during the 2000s, Peru has become one of the fastest growing economies globally.

          In 2011, Peru received a score of 0.752 in the HDI. The Peruvian economy is mainly strengthened by its export sector. That’s what finances the money required for imports and also to pay off the external debts of Peru.

          As per the Economic Complexity Index, Peru constitutes the 59th largest export economy in the world, and also the 91st most complex economy across the globe. In the year 2014, goods worth up to 39.8 billion USD were exported from Peru. In the same year, the import of goods was calculated to be 42.3 billion USD.

          Being the fifth most highly populated country in South America with a population of almost 30 million, Peru has shown tremendous tenacity in terms of controlling inflation as well as unemployment in the last few years.

          Exports

          The biggest export partners of Peru are China (34 %), the United States (11%), Switzerland (7%), South Korea (6%), and India (6%). Canada and Chile are important export partners of Peru as well. Since Peru is a nation rich in resources, it relates to both economic stability as well as social and environmental instability. With the government providing ready access to resources and the multinational operations taking place within Peru, this issue is not likely to go away anytime soon.

          In the year 2016, about 33 billion USD to 38 billion USD worth of goods were shipped from Peru to different parts of the world. This made it receive the 50th place in exports among the list of countries conducting export activities.

          The items that are majorly exported from Peru include ores, gems, copper, food industry waste, animal fodder, coffee, crotchet clothing/accessories, molybdenum, silver, crude petroleum, natural gas, asparagus, fruits (mangoes, avocados, bananas, citrus fruits), textiles, fishmeal, fabricated metal products, and alloys.

          Imports

          In the year 2017, goods worth of 38 billion USD were imported into Peru, therefore making it the world’s 54th largest importer. The main items that are imported to Peru include petroleum/petroleum products, chemicals, plastic, machinery, wheat, corn, soybean products, vehicles, TV sets, front-end loaders, telecom equipment and telephones, paper, cotton, and medicines.

          A lot of Peru’s imports come in from China and the USA. Some of the other import partners include Argentina, Chile, Colombia, Ecuador, Mexico, Brazil, and Japan.

          U.S.-Peru Trade Bond

          In 2006, Peru and the United States signed the United States-Peru Trade Promotion Agreement (PTPA). While the agreement was ratified in June of 2006, the Protocol of Amendment took place in June 2007. In December 2007, the Agreement Implementation Act became law, and was officially implemented in February 2009.

          The trade of goods and services between Peru and the United States came up to 20.1 billion USD in 2017. While the exported goods were a total of 11.3 billion USD, the imported goods were 8.8 billion USD. The goods trade surplus between U.S. and Peru was 1.8 billion USD in 2018. The services trade surplus between the U.S. and Peru came up to 1.2 billion USD in 2017.

          The GDP of Peru was approximately 225.2 billion USD in 2018. The foreign direct investment (FDI) of U.S. in Peru in terms of stock was 6.4 billion USD in 2017. This direct investment is mainly dominated by mining, manufacturing, and nonbank holding companies.

          Summing Up

          Peru has witnessed enormous economic growth lately, which has been due to economic stability, smart trade, and an increase in consumption and investment. Some of the biggest industries in Peru are that of fish processing, cement, rubber, chemicals, petroleum extraction and refining, fishing, soft drinks, furniture, textiles, and mining and refining, to name a few.

          Peru’s capital, Lima, which is also its largest city, is the financial and industrial center of the country. It’s also one of the most vital financial centers in Latin America. The city accounts for over two-thirds of Peru’s industrial production. It serves as a regional destination for the cargo industry, and also has the biggest export industry in the continent as a whole.

          The GDP of Peru is dominated mainly by the service industry, followed by the manufacturing and extractive industries. The United States happens to be biggest and most important trading partner of Peru, and a free-trade agreement was agreed upon between the two countries in the year 2006.

          Inland Freight Services

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